Thursday, October 31, 2019
Freedom of Information and Privacy Essay Example | Topics and Well Written Essays - 500 words
Freedom of Information and Privacy - Essay Example the government has every right to charge the organization; therefore it is better that the organization must make sure that the public funding is not being used for any purpose other than public welfare (Misuse of Public Funds, 2013). 2. No in my opinion I do not think that there should not be any difference between the privatization of traditional governmental services and private corporations using public funding for non-traditional services, as both of these services are directed towards one cause i.e. providing services for the betterment of people. Privatization of the traditional government services can be quite beneficial in some cases as when any of the government department or institution is facing a loss. The government may privatize an institution, which in the long run can be beneficial for the overall economy. Private institution at the end of the day believes in gaining profits out of the operations they are carrying on. This is what makes the private institution more successful than the government institutions (Should government stop offering any service that the private sector can provide?, 2013). 3. There are many private corporations in which they fraud, waste abuse and corruption is at its peak. The charitable organizations too are not at all immune to the FWAC. Brain Collins the retired CEO of Enron Corporation stated in an interview that their organization conducted a research on nonprofit organizations. The result of the research suggested that every year the corruption of 1.1 million occurs in the nonprofit organizations. One can predict that if the amount of corruption is so high in institutes that are solemnly working for the betterment of the society that what will be the case of other organizations (Not-for-Profits Not Immune to Fraud, 2013). 4. If the FOIA legislation fails to force the private organizations to effectively respond to their request, the government can play its role in by assigning a contracting agency that will look
Tuesday, October 29, 2019
Major fire or explosion at an industrial production, transportation, Research Paper
Major fire or explosion at an industrial production, transportation, or storage facility. I have picked the phillips disaster of 1989 - Research Paper Example The explosive force is said to be 2.4 tons of TNT triggered by unidentified source of ignition. The ignition sources could be catalyst activator, forklift, welding or cutting-torch equipments or the electrical gear in the control rooms or in the finishing building. The debris spewed to a distance as far as six miles and seismographic data revealed the explosion at 3 to 4 on the Richter scale. The main explosion was followed by another explosion within 15 minutes when two huge isobutene storage tanks exploded. In all, there were six more explosions at the site (Bethea, Robert). The initial explosion caused the death of 23 persons which included 21 employees from the Phillips and two were from contractors maintenance team. All fatalities occurred within 250 ft of the initial gas point of release (Bethea, Robert). 2. Phillipss operating procedure mentioned that the pipes that supply air to the valve actuator should not be connected during the time of maintenance; however, that was not the case as it could be connected during maintenance. 3. The air supply valves were in the open position to allow the air flow making the actuator to rotate the Demco valve as soon as the hoses were connected. The valve lockout system was not such that it could prevent someone from opening the Demco valve during maintenance of the plant. (Bethea, Robert) b) The lockout device was taken out from the Demco with the air supply reconnected and the block valve was in open state with the leg closed which was subsequently opened to the atmosphere without Demco valve relocked (Bethea, Robert). The site had no fixed gas detection system though it held huge quantity of inflammable material under high pressure. This prevented early warning signals of gas leak or release (Health and Safety Executive). In an attempt to douse the fire, firewater was taken from the
Sunday, October 27, 2019
Background and decisions of BMW
Background and decisions of BMW BMW Company Background BMW cluster, headquartered in Munich, Germany, is one of the mainly victorious multi kind finest motor manufacturers in the globe. BMW is a German motor; motorbike and appliance manufacturers founded in 1916 and have been widely trade since 1969. The companys slogan in English is â€Å"The Ultimate Driving Machine†and Sheer Driving Pleasure†. The original German slogan is â€Å"fraud am Fahren,†which translates to â€Å"joy in Driving†in English. The corporation produce, and market, a pied choice of senior end active cars and motorcycles. It is also own and make the tiny product and is the parent business of Roll-Royce vehicle Cars. BMW is known for its performance and luxury vehicles. BMW has a global presence with group subsidiaries in 41 countries and over 3000 dealerships and local importers in over 100 countries. BMW is a progressive company with salad of 1.2 million automobile and 101,000 motorbikes in 2008 generating revenue of 53.2 billion euros. It has a combined global workforce of 100,000 employees. In addition to cars and motorcycle, BMW operates an aircraft engine division under the brand name of Rolls Royce. The BMW group also has a strong market position in the motorcycle sector and operates successfully in the area of financial services. The Company operates its own financing company, which offers financing for vehicles. Automobiles accounted for 78% of 2000 revenues; vehicle finance leasing, 18%; motorcycles, 3% and other, 1%. UK is the third major souk and second main making base for the BMW group universal, and the only state where BMW groups three brands BMW, TINY and Roll-Royce vehicle Cars are represent {See Appendix-1} Chapter 1 1.1 What is marketing Marketing is a communal course by which person and group acquire what they want and want during creating, offering, and liberally exchanging goods and services of worth with former. (Kotler, 1991) 1.2 Marketing concept The marketing concept of BMW holds that the type to attaining organisational task consists of organism more victorious than competitors in integrating marketing activities toward formative and rewarding the needs and requirements of target markets.{See Appendix-2} The marketing concepts of BMW are as follow. Marketing focuses on the satisfaction of customer needs, wants and requirement. The philosophy of marketing needs to be owned by everyone from within the organisation. Future needs have to be identified and anticipated. There is normally a focus up on profit ability, especially in the corporate sector. However, as public sector organisations and non-profit organisations adopt the concept of marketing, which might not be the case as usual. More recent definitions recognize the influence of marketing upon society. 1.3 Marketing process of BMW Marketing process of BMW are as follows Under the marketing concept, BMW company find a way to discover unfulfilled customer needs and bring to market product that satisfy those needs. A model can be created to design the process using a targeted sequence of steps: The customer and market are analysed to identify opportunities. The market strategy is formulated to yield a value position. Tactical decisions regarding marketing strategy are made The marketing plan is implemented and the result is carefully monitored. The marketing course aim to distribute enlarged success in company through better marketing tactic and marketing plan increase. A better marketing progression provide a number of benefits, with more free time, higher visibility, stronger worker skills sets, easier management, reduced duplication of effort, and increased individual and team rewards, and overall, less headaches. This process in turn creates a marketing organisation thats more reliable, more responsible, with budget. The next paragraph will lay emphases on the advantage of BMW marketing. 1. 4 Benefits of marketing The benefit of marketing is that it enables company to exploit their budding and achieve the punter at the correct time. A right loom to promotion involve sympathetic the client and their require identify the genuine wants of the market. It is forever vital to appreciate bazaar wants, quite than to effort to â€Å"power†persons to purchase yours goods and services because you reflect they are enhanced than something else accessible. If the purchaser doesnt think they will not vend to them. It is as simple as that. A good advertising approach is base on the spot on level of explore in to a markets path and its key company. They have to spot precisely where your commerce strength fit into its souk, and how it will thrive inside it. Chapter 2 Internal and corporate analysis in terms of strength, weaknesses, opportunities and threats (SWOT) will assist in gaining an understanding of where BMW is currently in term of strength and where improvement is required with in the business and what outside environment threats it may face as well as what new opportunities are available to the company in the short and medium term. This image of internal analysis which are as follow. {See Appendix-3} The Table below is a demonstrate of the BMW{See Table Appendix-1} 2.3. Macro environment The major external and uncontrollable factors that influence an organisation decision making and affect its performance and strategies are as follows. 2.3.1 Political factors Laws and regulations had affected the automobile industry as a whole. {See Appendix-4} These laws generally revolved around the environment norms that were to be fulfilled by any car industry. Thus the car manufacturers had to take care of the environmental issues during manufacturing of cars. European Commission proposed binding rules to cut CO2 emission on new cars to 130 gms/km 2.3.1.1 Example According to my research 2005 BMW achieved only 40% of their emission target but today BMW groups with its efficient dynamics programme achieved a reduction of average fuel consumption and CO2 rating by 10.2% and has made a greatest progress in terms of efficiency of all car makers in the European automobile market in the year 2008. Extracting maximum driving pleasure from every drop of fuel; is the aim of BMW Efficient dynamics. 2.3.2 Economic Factors Economic factors relate to the exchange rates, economic growth globally and the business setting prevailing in the industry. Following are the economic factors which has affected the automobile industry. Economic Downturn. Increase in the cost of oil 2.3.2.1 Example Rapid increase in the fuel prices is affecting the demand and the buying power of customer. According to BBC News which crude oil prices at 22 year high, motorists are paying out up to  £1 a litre at the pumps. Moreover according to Automobile Association research showed that in June 2008, litre of unleaded petrol had achieved an average national price of 118.2 pence per litre, while diesel cost 131.6 pence per litre. He also claimed that the annual coast to the motorist of keeping a car worth between  £13,000 and  £20,000 on the road now stood at  £4,112. The impact of this price hike on the drivers of the UK is 28 million cars are clear and it shows how the increase in oil price is affecting the car industry as a whole. In order to cope up with the present situation and existing demand for more fuel cars, BMW efficient dynamic programme which aims at reducing consumption is proved to be successful. 2.3.3 Social environment factors Social factors include the changes in cultures and demographics globally a part from change in the buying pattern and capacity of the customer. Increasing population also has an effect on the car industry. 2.3.3.1 Example According to the Mintel data, UK population will reach 64 million people by 2013. The strongest growth will be witnessed among the age group 25-34, 45-54 and over 65 age groups. Out of these two age brackets, the 25-34 age groups will be a potential key age group for the used car market where the highest proportion of demand is accounted for by younger adults. The age group 45-54 is a key age group for new and used car demand. Moreover during recession consumers spending priorities also changes and they are doing cost cutting on many areas of their expenditure. But the purchase of a new or second hand car has been one of the few areas to show an increase as a spending priority in 2009. This may increase the demand for the cars in the near future and car industry including BMW will again get a positive response from the existing and new customers. 2.3.4 Technical environment Factors With every spin of time technology is also changing which also reflects the consumers buying patterns. Nowadays, people are more concerned with the new and latest technology. In order to cope up with the current demands, BMW efficient dynamic technology tries to stay one step ahead. BMW has launched an I Drive in its all new cars. BMW is also spending a huge amount of money on its research and development department in order to innovate latest techniques like BMW car 2-x communication in their AMULETT project with the aim of improving pedestrian safety and thus creating a more competitive image in the car market. 2.3.5 Legal Environment Factors. Restrictions and strict pollution norms set up in European market and health and safety rules on all cars by (EURO NCAP) is affecting the whole motor industry. The European New Car Assessment Programmed (Euro NCAP) is a European car safety, performance assessment programmed. Euro NCAP publishes safety reports on new cars, and award ‘star ratings based on the performance of the vehicles in a variety of crash tests, including front, side and pole impact, and impact with pedestrians. The entire car manufacturing companies including BMW has to abide by these legal rules and regulations. 2..3.6 Environment Factors With the increasing effect of awareness of global warming and greenhouse effect, people are more diverted towards the use of more eco-friendly cars, hybrid and fuel cars. With the change in consumer taste and preferences the automotive industry has to be more focussed on the changing demand and patterns of the consumers. In order to cope up with the changing behaviour of the consumer, BMW is working on managing resources efficiently and eliminating or recycling all forms of waste wherever possible and thus moving to the hybrid cars. BMW group was the first car manufacturer in the world to create a vehicle Recycling Network. Chapter 3 3.1 Market segmentation BMW had worn three ladders to targeting which is advertising segmentation, target option, creation position.(See Appendix-5) BMW use segmentation to spot exact trade description. To find additional information BMW at Geographic segmentation. Demographic behavioural Psychographic Segmentation Behavioural Segmentation 3.1.1 Geographical segmentation Geographic segmentation calls for dividing the souk into different geographical element such as nations, regions, states, countries, cities, or neighbourhoods. A business can choose to work in one or a few geographical areas, or to function in all areas but pay notice to geographical differences in requests and requirements. 3.1.1.1 Example Lets take a Pakistan and UK BMW market. In Pakistan most of people live in low level society they cant effort BMW. But in UK people live in high Statius society they could effort BMW. 3.1.2 Demographics behavioural The demographics of those who are bright to purchase a BMW are men and women aged 30-50 lifetime old. Behaviourally these folks have a winning picture in their brain facing trade cars. They also estimated to wish a faultless current look or activity look, and the sense fine factors of a recognized trader system. The benefits are required by these folks are dominance, act, dependability excellence. 3.1.3 Psychographic Segmentation BMW Psychographic segmentation divides buyers into different groups based on social class, existence, or character characteristics. One forward-looking grocery store found that segmenting its self-service assembles goods by lifestyle had a big repay: 3.1.4 Behavioural Segmentation Behavioural segmentation divides buyers into groups based on their information, manner, employ, or reply to a creation. Many marketers consider that performance variables are the best starting tip for structure market segments. 3.2 Targeting BMW have the target new customer group that are not primarily targeted by BMW yet. But are interested in the brand and have high buying potential in BMWs products currently or in the near future. These groups include students and women, with students becoming part of the target market with the start of their careers, and women providing sales opportunities due to increasingly higher level of completed education as well as higher paid jobs compared to a decade ago. 3.3 Positioning The position of these company and their brand has been build up over numerous lifetime but BMW has dazed their blot winning the community in an optimistic way with the help of superior community relative and pioneering publicity agitation. This has led to rolling sales expansion throughout the global car market. Chapter 4 4.1 The Marketing Mix. Marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. Traditionally the market mix consisted of 7Ps. Marketing mix can be put under seven headings, often referred to as the seven ‘Ps. {See Appendix-6} Products Promotion Price Place Physical evidence Public purchase 4.1.1 Product The generally central constituent in the selling is the companys produce because this affords the positive desires required by patrons. For example a car that does not start in the Moring will be like by clients. Marketing manager expand their creation into brand that assist to make a single place in the brain of clients. The current models are {See Table Appendix-2} 4.1.1.1 Lifecycle of BMW Each creation goes during what is known as a life cycle procedure. When explore what combine is best matched to the creation. We need to deem where in the life cycle sightsee goods lie which is revealed in the below shape and then depending choose if there is want to make transform in the produce and re-launch. {See Appendix-7} 4.1.1.2 Example BMW X5 launched at 2000 and then corporation lunched the senior or new description of X5 in 2006, for 3 series its 7 years lifecycle and for 7 years only for the 1st model lifecycle of three merchandise. These are the 3, 5 and 7 Series Saloons. This PLC scheme not only helps to ensure more steady profits, but also allow for the growth of substitute produce on a steady base. BMW has also been growing its selection of late and this can be seen by the company of some new product launch in the last few years. The above goods are all moderately established. Many of them have been creature affected for many years now with some redesigns and re-launches. 4.1.2 Price. BMW cost variety is from about  £16,000 to  £60,000 minus. There are many factor that can influence their car price such as mechanism size, vehicle activity account etc. 4.1.2.1 Example Price such as mechanism dimension has been used by BMW for the 3- series is opposition leaning price. Most of the investigate show that all other competitor such as VW, Audi, and Alfa Romeo etc. in the 3 Series manufacture price sore not so vital and create the main revenue is not as required as it would be for a lesser business.{See Table Appendix-3} 4.1.3 Placement. BMW use better market dealership and significant for non merchant network countries they have four car developed vegetation in the UK. There are additional than 156 dealers in the UK who are franchise to retail BMW cars, moreover 148 dealers are franchised to sell Minis. Universal BMW work in more than 100 dissimilar countries with about 4,000 plus dealers which are authorised to retail both new and second-hand cars, parts and after sales service goods. Pattern of allocation for BMW is shown below in the drawing which followed by the business Producer >>>>>Dealers>>>>>>Customers 4.1.4 Promotion BMW has forever focused completely on their cars with same promotion business, WCRS being the worn since 1979. A broad variety of publicity is used by this organization such as TV for branding campaign and new carriage launches, the press with sensationalist weekend dye addition, regional publication and magazines, outside campaign, sales fiction, fliers etc. publicity Campaigns/Slogans used by the corporation in the past. 4.1.4.1 Example According to my research in 1983, 1994, 1997 and 1999 when James bond used in every movies BMW car, James Bond movie â€Å"The Catcher†4.1.5 Physical Evidence Physical Evidence is the element of the BMW company mix which allows the customer again to create decision on the establishment. 4.1.6 Public A necessary ingredient to BMW company condition is the use of fitting workers and people. Recruiting the right workforce and training them appropriately in the company is essential if the establishment wants to attain a form of competitive advantage. 4.1.7 Purchaser Refers to the systems used to assist the establishment in deliver the service. An efficient service that replaces old credit cards will further customer faithfulness and poise in the company Chapter 5 5.1. Buyer behaviour Customer trade performance is the production of how person or domestic customers behave or the choice creation on business any merchandise or services. Customer trade activities is a significant part of promotion, which studies the reason of why, when where, what and how the customers are behave on their trade decision. customer purchaser actions depends on dissimilar types of marketing (product place, price, promotion, physical evidence, public, purchase) and other stimulus ( Economic, Technological, Political and Cultural) these factors in fluencies the customer black box to make response for creation choice about selecting goods, brand option, price etc. Cultural, social, individual and mental these four factors have great power on customer buyer performance. Person wants, insight, values, performance erudite from culture, relations other institution. Social factor consists of a persons orientation collection relations, friends organisations. Private factor is incorporated age of lifecycle, financial circumstances, vocation, qualities and other individual kind power buyer choice course. Different mental factors like inspiration, perception, attitude, conviction have pressure on customer export conclusion. 5.1.1 Example Driving with friend A- class which in turns affects attitude towards BMW Mercedes and change behaviour in purchasing an automobile. Attitude is not constant and change over time since they are result they are experience. A car crash might change the attitude towards the brand and one might decide to exclude BMW Mercedes as an option buying a car. Chapter 6 6.1 Marketing mix BMW is considered with a single purpose in mind: to augment the joy of driving. BMW engineers have high priorities of providing more exhilaration, more comfort, and pretty driving safety. The target market of BMW is typically the upper middle class with the average takings of about 150,000 dollars a year. Two thirds BMW owners were male, married, and did not have children. In most recent times, the target market has had a focus on the middle aged but continues to have a wide choice of target market from ages 25-35 years old. The BMW Group has unstated about the recent economic attitude of the United States and other countries as well. They have taken ladder to help by opening kindling and expanding to create jobs. 6.2 Consumer market Consumer markets deal with final customer. Each customer buys the product for their direct scarification and has no other intended use for it 6.2.1 Example The market for magazine is consumer market- the customer doesnt resell the magazine and buys it for their own enjoyment. 6.3 Business market Business market is an online marketplace that matches business buyers with franchisors and business opportunities {See Table Appendix-4} 6.5 Domestic market The market for goods and services in the country where the company is based. 6.5.1 International market International marketing is the application of marketing orientation and marketing capabilities to international. {see appendix 6.5.1} ( muhlbacher, Helmuth, Dahringer 2006) 6.5.2 Compression Domestic and International market {See Table Appendix-5} Chapter 7 Conclusion It has taken a lot of referencing and researching for me to write this report and I have learnt a lot from this report, I started off with very little knowledge about this topic and worked my way Through the assignment and I would conclude that BMW is a very powerful name in the automobile industry due to its reputation of providing high quality products and services. BMW and person actor has yearly shown burly monetary results and has reserved its market shares. This become of curiosity to study more greatly, in direct to find the factor last a unbeaten concern and burly product. Scrutiny the progress of BMW through the past five years. Not only are the monetary account taken into reflection that BMW is the most flourishing vehicle producer in top sector. BMW is a well known and greatly cherished brand and has high miscellany in the merchandise range. BMW possesses high inner aptitude and the corporation develop a big part of the car by themselves. The rising market in South East Asia, Russia Eastern Europe and South America has shown obvious swelling growth. Produce, transport and raw fabric outlay have both dampened margins and affected the export power of customers like a s lofty oil price.
Friday, October 25, 2019
Suburbia: Inappropriate Growing Environment :: Suburbs Education Learning Essays
Suburbia: Inappropriate Growing Environment There's a reason people go to school in their youth rather than after they get older. It's because the childhood years are the ones during which the potential for learning is the greatest. Youths' impressionable minds have far less trouble picking up important concepts like mathematics and grammar than do adults'--in fact, young minds seem oftentimes to learn automatically or accidentally. It stands to reason, therefore, that adults should take advantage of that impressionability to educate the leaders of the future in areas such as art, basic economy, and interpersonal behavior while their chances of learning are still so great. In a world and a time where the quest to become a functional and productive member of society is such a difficult one and so rarely completed, one can't help feeling that it's absolutely imperative that those in charge of raising the next generation ensure that they do so under the best possible circumstances: that is, in a living environment conducive to intellectual and emotional challenge and growth. However, such is clearly not always the case. As a place to develop and mature, one of the worst locales in America--and possibly the most misjudged--is suburbia. A vast wasteland of dressed-up emptiness, the typical suburban town promises an idyll it could never truly hope to deliver. An attempt at compromise between the country and the city, it instead combines the worst aspects of both. And as we shall see, children who grow up in this abyss will find their social lives constantly lacking and their cultural needs rarely met. The causes of these shortcomings of the suburban town are firmly rooted in its geographical and political structure, as well as in the attitudes of many suburban adults. Geography "The suburbs represent the triumph of accessibility over proximity," writes Harlan Paul Douglass in his 1920s book The Suburban Trend (187). Douglass is writing to defend his home--in his own words, an "apologia for suburban life"--but he appears sadly unaware of the sinister truth to his statement (v). Indeed, some semblance of indiscriminate accessibility is a reality in the suburbs--for people of means. That is to say, people who can drive, or who live near public transportation routes. Children tend not to fall into either of these categories. On the one hand, most are too young to get driver’s licenses or too poor to pay for a car and auto insurance. On the other, even those who live within walking distance of mass transit systems may find its cost prohibitive, or else their parents may forbid them to use it for fear of what kind of people they'll meet.
Thursday, October 24, 2019
Accounting Regulations Essay
Accountant Responsibilities By: Jennifer Koppelman March 11, 2014 Accountant Responsibility Accountants have responsibilities to many different groups such as their clients, the government and third parties. It is important that accountants act in a particular manner and have high ethical standards, integrity and professionalism. Accountant’s job responsibility is to validate financial statements and perform the duties in accordance with all the principles, standards and laws. Even though an accountant is hired by a company, they have a responsibility to many more people than just the company. Some of the people that accountants are responsible to, would be the company’s management, investors, creditors, outside regulatory bodies, and the integrity of the financial markets. Accountants need to be consistent and constantly be carefully exercising due diligence and pay close consideration of the materiality of content (Accountant Responsibility). Accountants have a code of professional conduct that they should adhere to. This states that accountants should maintain objectivity and be free of conflicts of interest in the discharging professional responsibilities. An accountant in public practice should be independent in fact and appearance when providing audit and other attestation services. Situations where accountants will need to show objectivity would be when they are felt compelled to deliver bad news to a client or employer based on an analysis that they had performed (Colson, 2004). There are two different types of auditors; internal auditors and external auditors which have different responsibilities. Internal auditors have the main responsibility to develop statements that present the financial situation of a company in a fair way, meaning that as much disclosure as necessary to give a reasonable picture of the financial situation to any user having a claim to the knowledge. External auditor’s responsibility is to affirm that this has happened by issuing an opinion as to whether the financial statement fairly presents the financial position of that corporation (Duska, 2005). Accountant Responsibility to Clients Accountants have a professional responsibility to clients to keep their information confidential. The rule states that a member in the public practice shall not disclose any confidential client information without the specific consent of the client. This also extends to other accountants not directly involved with the client who obtain information through practice reviews or sanctioned disciplinary hearings to maintain confidentially. There are certain exceptions that facilitate compliance with other professional and legal obligations. Maintaining confidentiality is not only a professional obligation but also a legal obligation. General knowledge and expertise obtained through a client engagement is not considered to be confidential information (Cashell). Accountants have ethical responsibility to protect their clients, produce financial statements and tax returns that are to the best of their ability after performing proper due diligence. If there was an event that an audit would occur for a government agency they should represent their clients with professionalism. Accountants should always maintain the highest ethical standards. Accountants perform essential and critical roles in society. Accountants have responsibilities to all of those who use their professional services. The American Institution of CPA’s has an official rule, Rule 301 states a member in the public practice shall not disclose any confidential information without the specific consent of the client. Accountant’s number one responsibility is to its clients, it is important that accountants do not disclose client information to anyone without the client’s permission first. There are consequences to the accountant if they do not keep client information confidential. It can also have a negative effect on the clients business, which will negatively affect the accountant also (ET Section 301 – Client Confidential Information). CPA Responsibility to Clients Case Even when an accountant has the intention to warn others of pending financial harm the courts have held that accountants must not give any client information, client information should always remain confidential. In a case Wagenheim v. Alexander Grant & Co the court ruled that Alexander Grant improperly divulged confidential information about their client, Consolidata Data Services, to other clients. Consolidata Data Services, an audit client of Alexander Grant performed payroll services for several of Alexander Grant’s other clients. Alexander Grant discovered that Consolidata Data Services was having financial difficulty; Alexander Grant warned their other clients to stop doing business with Consolidata Data Services. Alexander Grant argued that the other clients would suffer financial damage without warning them. The ruling was against Alexander Grant, the court said that there was no proof that Consolidata Data Services was in a financial hardship that they could not recover from. Which Alexander Grant had no legal right to inform third parties of the financial burden that Consolidata Data Services was in (Cashell, 1995). It is important that accountants keep client information confidential at all times. The accountant might not know the whole picture of a business and a company can state that they could have recovered from the financial burden but because the accountant may have told other clients that could ruin the reputation of the client and affect the business. It is always safer not to say anything in regards to the financial situations when you have an obligation to your client. Accountant Responsibility to Third Parties Accountants do not have as much liability to third parties as they do to clients. Accountants have a liability to third parties who are relying on the audit information, only if there is fraudulent conduct or proof of negligence would they be liable to the third party. When public accountants are done with an audit of their clients records and financials they put an opinion letter which sets forth, among other things, the scope of the audit and a professional opinion concerning the financial representations. Even though third parties may rely and act upon the auditor’s opinion, the auditor is contractually bond only to the client and usually owes nothing, no legal duty to third parties for negligence (Greene, 2003). Accountants need to be very careful when warning outsiders of a client’s fraud. Based on prior court cases, CPA’s generally do not have an obligation to inform outsiders of known fraud unless if they remain silent they are becoming culpable themselves. It is a risky situation if an accountant decides to â€Å"blow the whistle†(Cashell, 1995). Accountants are generally not responsible to third parties in contracts because there is no privity of contract. However, accountants can be held to be a common law duty of care towards third parties in certain circumstances, despite that there is no contractual duties. Circumstances that give rise to such duty have been considered in a substantial number of cases in recent years and three general tests have been developed. One of the tests would be if there is foreseeability damage, proximity between parties and considerations of justice and reasonableness. Another test would be testing the assumptions of reasonability. If the court would take an incremental approach in comparing the relationship in any given case to previously decided cases in which a duty of care had been recognized or rejected. An accountant can be liable to a third party if the accountant knew or should have known that they were relying on the audit, only for fraudulent conduct and proof of mere negligence is not sufficient. If the accountant knew that the audit report for the client was intended to supply the information to a third party who would rely on the information. If the third party would be relying on the information in a decision concerning transactions involving the client and the third party (Professional Liability of Accountants & Auditors). Duty to Disclose to Third Parties In some cases information should be disclosed to third parties but an accountant needs to be very careful and proceed accordingly. If it is detailed in their engagement letter, which is a written agreement to perform services in exchange for compensation then an accountant has a duty to disclose information. Once the letter is signed off on by an officer then the letter serves as a contract (Engagement Letter). In one case; Fund of Funds Ltd. v. Arthur Andersen & Co. the CPA had a duty to disclose. Arthur Andersen was the auditor for two clients, Fund of Funds and King Resources Corp. King Resources Corp developed natural resource properties and agreed to be the sole vendor of such properties to Fund of Funds at prices no higher than those charged to King Resource Corp industrial clients. Arthur Andersen learned the agreement was not being met but failed to inform Fund of Funds. The court did rule that Arthur Andersen should have disclosed this fact to Fund of Funds because they had knowledge of the overcharges, knew the terms of the agreement that was being violated and the language of their engagement letter produced a contractual obligation to reveal that information. Another case involving duty to disclose, this one a CPA was found that he did not have a duty to disclose information. The case Gold v DCL Inc. , Price Waterhouse & Co. informed DCL in December that they intended to qualify their audit report on DCL’s financial statements. DCL was in the business of leasing computers and Price Waterhouse believed that their ability to recover their computer equipment costs was impaired due to the impending release of a new line of more powerful computers by IBM. In February, DCL announced earnings without mentioning Price Waterhouse’s concern and on February 15 Price Waterhouse was replaced. The court ruled that there was no basis in principle or authority for extending an auditors duty to disclose beyond cases where the auditor is giving or has given some representation or certification and the silence and inaction of the defendants auditors did not make them culpable. The court’s reasoning that the CPA did not have to disclose was because the auditors had issued no public opinion, rendered no certification and in no way invited the public to rely on their financial judgment there was no special relationship that imposed a duty of disclosure (Cashell, 1995). Accountant Responsibility to the Government Different local, state and federal governments have different rules and regulations that accountants need to learn for the area and industry that they will be working in. This is important to find out and comply with the different regulations. This is part of an accountant’s responsibility to provide accounting services that are in compliance with the government regulations for your client’s particular industry. There may be different regulations for different industries so it is important to know which regulations are pertinent to your client. CPA for Responsibility to Government Case Some state laws might grant accountant client privileges, but these laws do not usually extend to a summons or subpoena related to a Federal Investigation by such agencies such as the IRS, or the SEC. In a case, Couch v. United States, the Supreme Court concluded that no Federal accountant client privilege exists and state created privileges do not apply to Federal cases. Before an accountant is responding to a Federal agency, the accountant should be sure that they are only responding to a valid and enforceable subpoena. In another case, Roberts v. Chaple, the Appellate Court ruled that the accountant violated Georgia’s statutory accountant client privilege because he provided information to the IRS without having been served a valid summons or subpoena. Some state privilege laws could also affect the ability to release information pursuant to a review of a CPA’s practice. Firms are responsible for meeting and keeping client confidentiality obligations whenever state statutes do not clearly provide a confidentiality exemption for a peer review of a firm’s practice. Whenever an accountant is not sure on if information should be released it would be best to consult a lawyer and obtain legal counsel to ensure that they are not breaking any laws or violating any confidentiality agreements or obligations(Cashell, 1995). Conclusion Accountants need to be ethical and practice with the highest professionalism and ethics. Accountants have many responsibilities not only to the client that they are servicing but to the government and to third parties. Responsibilities are higher to clients then third parties but it is important to know when and where your responsibility for each is. If an accountant is negligent or not responsible to the parties when they should have been there are consequences. An accountant’s main responsibility is to their client, it is important to keep client information confidential at all times. Not keeping client information confidential can have a negative effect and consequences on the accountant and the client. It is important that accountants do not disclose client information without the permission from the client first. All accountants need to have and maintain the highest ethics, professionalism and confidentiality.
Wednesday, October 23, 2019
Business Accounting
CHAPTER 1 Accounting: An Overview and AnalysisMULTIPLE CHOICE QUESTIONS41. Accountants refer to an economic event as a a. purchase. b. sale. c. transaction. d. change in ownership. 42. The process of recording transactions has become more efficient because a. fewer events can be quantified in financial terms. b. computers are used in processing business events. c. more people have been hired to record business transactions. d. business events are recorded only at the end of the year. 43. Communication of economic events is the part of the accounting process that involves a. identifying economic events. b. uantifying transactions into dollars and cents. c. preparing accounting reports. d. recording and classifying information. 44. Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? a. The appointment of a new CPA firm to perform an audit. b. The purchase of a new computer. c. The sale of store equipment. d. Payment of income taxes. 45. The use of computers in recording business events a. has made the recording process more efficient. b. does not use the same principles as manual accounting systems. c. has greatly impacted the identification stage of the accounting process. . is economical only for large businesses. 46. The accounting process involves all of the following except a. identifying economic transactions that are relevant to the business. b. communicating financial information to users by preparing financial reports. c. recording nonquantifiable economic events. d. analyzing and interpreting financial reports. 47. The accounting process is correctly sequenced as a. identification, communication, recording. b. recording, communication, identification. c. identification, recording, communication. d. communication, recording, identification. 48. Which of the following techniques are not used by accountants to interpret and report financial information? a. Graphs b. Special memos for each class of external users c. Charts d. Ratios 49. Which of the following would not be considered an internal user of accounting data for the XYZ Company? a. President of the company b. Production manager c. Merchandise inventory clerk d. President of the employees' labor union 50. Which of the following would not be considered an external user of accounting data for the XYZ Company? a. Internal Revenue Service Agent b. Management c. Creditors d. Customers 51. Which of the following would not be considered internal users of accounting data for a company? a. The president of a company b. The controller of a company c. Creditors of a company d. Salesmen of the company52. Which of the following is an external user of accounting information? a. Labor unions b. Finance directors c. Company officers d. Managers53. Which one of the following is not an external user of accounting information? a. Regulatory agencies b. Customers c. Investors d. All of these are external users54. Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process? . Identification b. Communication c. Recording d. Analysis a55. All of the following are services offered by public accountants except a. budgeting. b. auditing. c. tax planning. d. consulting. a56. Which list below best describes the major services performed by public accountants? a. Bookkeeping, mergers, budgets b. Employee training, auditing, bookkeeping c . Auditing, taxation, management consulting d. Cost accounting, production scheduling, recruiting a57. Preparing tax returns and engaging in tax planning is performed by a. public accountants only. b. private accountants only. c. both public and private accountants. . IRS accountants only. a58. A private accountant can perform many activities in a business organization but would not work in a. budgeting. b. accounting information systems. c. external auditing. d. tax accounting.59. The origins of accounting are generally attributed to the work of a. Christopher Columbus. b. Abner Doubleday. c. Luca Pacioli. d. Leonardo da Vinci.60. Financial accounting provides economic and financial information for all of the following except a. creditors. b. investors. c. managers. d. other external users.61. The final step in solving an ethical dilemma is to a. dentify and analyze the principal elements in the situation. b. recognize an ethical situation. c. identify the alternatives and weigh th e impact of each alternative on stakeholders. d. recognize the ethical issues involved.62. The first step in solving an ethical dilemma is to a. identify and analyze the principal elements in the situation. b. identify the alternatives. c. recognize an ethical situation and the ethical issues involved. d. weigh the impact of each alternative on various stakeholders.63. Ethics are the standards of conduct by which one's actions are judged as a. right or wrong. b. onest or dishonest. c. fair or unfair. d. all of these.64. Generally accepted accounting principles are a. income tax regulations of the Internal Revenue Service. b. standards that indicate how to report economic events. c. theories that are based on physical laws of the universe. d. principles that have been proven correct by academic researchers.65. The cost principle requires that when assets are acquired, they be recorded at a. appraisal value. b. exchange price paid. c. selling price. d. list price.66. The cost of an as set and its fair market value are a. never the same. b. the same when the asset is sold. . irrelevant when the asset is used by the business in its operations. d. the same on the date of acquisition.67. The body of theory underlying accounting is not based on a. physical laws of nature. b. concepts. c. principles. d. definitions.68. The private sector organization involved in developing accounting principles is the a. Feasible Accounting Standards Body. b. Financial Accounting Studies Board. c. Financial Accounting Standards Board. d. Financial Auditors' Standards Body.69. The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that a. they are both governmental agencies. b. the SEC is a private organization of accountants. c. the SEC often mandates guidelines when no accounting principles exist. d. the SEC and FASB rarely cooperate in developing accounting standards.70. GAAP stands for a. Generally Accepted Auditing Procedures. b. Generally Accepted Accounting Principles. c. Generally Accepted Auditing Principles. d. Generally Accepted Accounting Procedures.71. Which of the following is not a characteristic of the cost principle? a. Reliability b. Subjectivity c. Objectivity d. Verifiability72.The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at a. $100 million. b. $600 million. c. $400 million. d. $500 million.73. All of the following are advantages cost has over other valuations except that it a. is reliable. b. can be objectively measured. c. can be verified. d. is relevant.74. The proprietorship form of business organization a. must have at least three owners in most states. b. represents the largest number of businesses in the United States. c. ombines the records of the business with the personal records of the owner. d. is characterized by a legal distinction between the business as an economic unit and the owner.75. The economic entity assumption requires that the activities a. of different entities can be combined if all the entities are corporations. b. must be reported to the Securities and Exchange Commission. c. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. d. of an entity be kept separate from the activities of its owner.76. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the debts of the business. c. is owned by its stockholders. d. terminates when one of its original stockholders dies.77. The partnership form of business organization a. is a separate legal entity. b. is a common form of organization for service-type businesses. c. enjoys an unlimited life. d. has limited liability.78. Which of the following is not an advantage of the corporate form of business organization ? a. Limited liability of stockholders b. Transferability of ownership c. Unlimited personal liability for stockholders d. Unlimited life79.A small neighborhood barber shop that is operated by its owner would likely be organized as a a. joint venture. b. partnership. c. corporation. d. proprietorship.80. Joan and Sara met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a a. joint venture. b. partnership. c. corporation. d. proprietorship.81. Which of the following is true regarding the corporate form of business organization? a. Corporations are the most prevalent form of business organization. b. Corporate businesses are generally smaller in size than partnerships and proprietor-ships. c. The revenues of corporations are greater than the combined revenues of partnerships and proprietorships. d. Corporations are separate legal entities organized exclusively under federal law.82. A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the a. stand alone concept. b. monetary unit assumption. c. corporate form of ownership. d. economic entity assumption.83. Deb Smith is the proprietor (owner) of Smitty's, a retailer of athletic apparel. When recording the financial transactions of Smitty's, Deb does not record an entry for a car she purchased for personal use. Deb took out a personal loan to pay for the car. What accounting concept guides Deb's behavior in this situation? a. Pay back concept b. Economic entity assumption c. Cash basis concept d. Monetary unit assumption84. A basic assumption of accounting assumes that the dollar is a. unrelated to business transactions. b. a poor measure of economic activities. c. the common unit of measure for all business transactions. d. useless in measuring an economic event.85. The assump tion that the unit of measure remains sufficiently constant over time is part of the a. economic entity assumption. b. cost principle. c. historical cost principle. d. monetary unit assumption.86. A business that enjoys limited liability is a a. proprietorship. b. partnership. c. corporation. d. sole proprietorship.87. A problem with the monetary unit assumption is that a. the dollar has not been stable over time. b. the dollar has been stable over time. c. the dollar is a common medium of exchange. d. it is impossible to account for international transactions.88. The common characteristic possessed by all assets is a. ong life. b. great monetary value. c. tangible nature. d. future economic benefit.89. Owner's equity is best depicted by the following: a. Assets = Liabilities. b. Liabilities + Assets. c. Residual equity + Assets. d. Assets – Liabilities.90. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Owner's Equity. c. Assets = Liabilities + Owner's Equity. d. all of these.91. Liabilities a. are future economic benefits. b. are existing debts and obligations. c. possess service potential. d. are things of value used by the business in its operation.92. Liabilities of a company would not include . notes payable. b. accounts payable. c. wages payable. d. cash.93. Liabilities of a company are owed to a. debtors. b. benefactors. c. creditors. d. underwriters.94. Owner's equity can be described as a. creditorship claim on total assets. b. ownership claim on total assets. c. benefactor's claim on total assets. d. debtor claim on total assets.95. Owner's equity is often referred to as a. residual equity. b. leftovers. c. spoils. d. second equity.96. When an owner withdraws cash or other assets from a business for personal use, these withdrawals are termed a. depletions. b. consumptions. c. drawings. d. credit line.97. Capital is a. an owner's permanent investment in the business. b. equal to liabilit ies minus owner's equity. c. equal to assets minus owner's equity. d. equal to liabilities plus drawings.98. Revenues would not result from a. sale of merchandise. b. initial investment of cash by owner. c. performance of services. d. rental of property.99. Sources of increases to owner's equity are a. additional investments by owners. b. purchases of merchandise. c. withdrawals by the owner. d. expenses.100. The basic accounting equation cannot be restated as a. Assets – Liabilities = Owner's Equity. b. Assets – Owner's Equity = Liabilities. c. Owner's Equity + Liabilities = Assets. d. Assets + Liabilities = Owner's Equity.101. Owner's equity is decreased by all of the following except a. owner's investments. b. owner's withdrawals. c. expenses. d. owner's drawings.102. A net loss will result during a time period when a. liabilities exceed assets. b. drawings exceed investments. c. expenses exceed revenues. d. revenues exceed expenses.103. If total liabilities increas ed by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? . $20,000 decrease b. $20,000 increase c. $25,000 increase d. $30,000 increase104. If total liabilities decreased by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $20,000 increase b. $10,000 decrease c. $10,000 increase d. $15,000 decrease105. If total liabilities decreased by $25,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $20,000 decrease b. $20,000 increase c. $25,000 increase . $30,000 increase106. If total liabilities decreased by $15,000 and owner’s equity decreased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? a. $20,000 increase b. $10,000 increase c. $20,000 decrease d. $10,000 decrease107. If total liabilities increased by $14,000 during a period of time and owner’s equity decreased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total assets is a(n) a. $14,000 increase. b. $20,000 increase. c. $8,000 decrease. d. $8,000 increase.108. The accounting equation for Goodboys Enterprises is as follows: AssetsLiabilitiesOwner’s Equity $120,000=$60,000+$60,000 If Goodboys purchases office equipment on account for $12,000, the accounting equation will change to AssetsLiabiltiesOwner’s Equity a. $120,000 = $60,000 +$60,000 b. $132,000 = $60,000 +$72,000 c. $132,000 = $66,000 +$66,000 d. $132,000 = $72,000 +$60,000109. As of June 30, 2008, Houston Company has assets of $100,000 and owner’s equity of $5,000. What are the liabilities for Houston Company as of June 30, 2008? a. $85,000 b . $90,000 c. $95,000 d. $100,000110.Owner's equity is increased by a. drawings. b. revenues. c. expenses. d. liabilities.111. Owner's equity is decreased by a. assets. b. revenues. c. expenses. d. liabilities.112. If total liabilities increased by $4,000, then a. assets must have decreased by $4,000. b. owner's equity must have increased by $4,000. c. assets must have increased by $4,000, or owner's equity must have decreased by $4,000. d. assets and owner's equity each increased by $2,000.113. Collection of a $500 Accounts Receivable a. increases an asset $500; decreases an asset $500. b. increases an asset $500; decreases a liability $500. c. ecreases a liability $500; increases owner's equity $500. d. decreases an asset $500; decreases a liability $500.114. Revenues are a. the cost of assets consumed during the period. b. gross increases in owner's equity resulting from business activities. c. the cost of services used during the period. d. actual or expected cash outflows.115. I f an individual asset is increased, then a. there must be an equal decrease in a specific liability. b. there must be an equal decrease in owner's equity. c. there must be an equal decrease in another asset. d. none of these is possible.116. If services are rendered for credit, then . assets will decrease. b. liabilities will increase. c. owner's equity will increase. d. liabilities will decrease.117. If expenses are paid in cash, then a. assets will increase. b. liabilities will decrease. c. owner's equity will increase. d. assets will decrease.118. If an owner makes a withdrawal of cash from a proprietorship, then a. there has been a violation of accounting principles. b. owner's equity will increase. c. owner's equity will decrease. d. there will be a new liability showing the owner owes money to the business.119. If supplies that have been purchased are used in the course of business, then a. liability will increase. b. an asset will increase. c. owner's equity will decrease. d. owner's equity will increase.120. As of December 31, 2008, Anders Company has assets of $35,000 and owner's equity of $20,000. What are the liabilities for Anders Company as of December 31, 2008? a. $15,000 b. $10,000 c. $25,000 d. $20,000121. Which of the following events is not a business transaction? a. Investment of cash by the owner b. Hired employees c. Incurred utility expenses for the month d. Earned revenue for services provided122. Net income results when a. Assets ; Liabilities. b. Revenues = Expenses. c. Revenues ; Expenses. d. Revenues ; Expenses.123. Owner's capital at the end of the period is equal to a. owner's capital at the beginning of the period plus net income minus liabilities. b. owner's capital at the beginning of the period plus net income minus drawings. c. net income. d. assets plus liabilities.124. A balance sheet shows a. revenues, liabilities, and owner's equity. b. expenses, drawings, and owner's equity. c. revenues, expenses, and drawings. d. assets, liabilities, and owner's equity.125. An income statement a. summarizes the changes in owner's equity for a specific period of time. b. eports the changes in assets, liabilities, and owner's equity over a period of time. c. reports the assets, liabilities, and owner's equity at a specific date. d. presents the revenues and expenses for a specific period of time.126. If the owner's equity account increases from the beginning of the year to the end of the year, then a. net income is less than owner drawings. b. a net loss is less than owner drawings. c. additional owner investments are less than net losses. d. net income is greater than owner drawings. Use the following information for questions127–129. Jimmy's Car Repair Shop started the year with total assets of $270,000 nd total liabilities of $180,000. During the year, the business recorded $450,000 in car repair revenues, $255,000 in expenses, and Jimmy withdrew $45,000. 127. Jimmy's Capital balance at the end of the year was a. $240,000. b. $225,000. c. $285,000. d. $195,000.128. The net income reported by Jimmy's Car Repair Shop for the year was a. $150,000. b. $195,000. c. $90,000. d. $405,000.129. Jimmy's Capital balance changed by what amount from the beginning of the year to the end of the year? a. $45,000 b. $195,000 c. $90,000 d. $150,000130. The balance sheet is frequently referred to as a. an operating statement. . the statement of financial position. c. the statement of cash flows. d. the statement of owner's equity.131. The primary purpose of the statement of cash flows is to report a. a company's investing transactions. b. a company's financing transactions. c. information about cash receipts and cash payments of a company. d. the net increase or decrease in cash.132. All of the financial statements are for a period of time except the a. income statement. b. owner's equity statement. c. balance sheet. d. statement of cash flows.133. The ending owner's equity amount is shown on a. the bal ance sheet only. b. he owner's equity statement only. c. both the income statement and the owner's equity statement. d. both the balance sheet and the owner's equity statement.134. Benson Company began the year with owner’s equity of $175,000. During the year, the company recorded revenues of $250,000, expenses of $190,000, and had owner drawings of $20,000. What was Benson’s owner’s equity at the end of the year? a. $255,000 b. $215,000 c. $405,000 d. $235,000135. Ed Dexter began the Dexter Company by investing $20,000 of cash in the business. The company recorded revenues of $185,000, expenses of $160,000, and had owner drawings of $10,000. What was Dexter’s net income for the year? a. $15,000 b. $35,000 c. $25,000 d. $45,000136. Jenner Company began the year with owner’s equity of $15,000. During the year, Jenner received additional owner investments of $21,000, recorded expenses of $60,000, and had owner drawings of $4,000. If Jenner’s e nding owner’s equity was $46,000, what was the company’s revenue for the year? a. $70,000 b. $74,000 c. $91,000 d. $95,000137. Janzen Company began the year with owner’s equity of $217,000. During the year, Janzen received additional owner investments of $294,000, recorded expenses of $840,000, and had owner drawings of $56,000.If Janzen’s ending owner’s equity was $531,000, what was the company’s revenue for the year? a. $860,000 b. $916,000 c. $1,154,000 d. $1,210,000Use the following information for questions138-139.Benny’s Repair Shop started the year with total assets of $100,000 and total liabilities of $80,000. During the year, the business recorded $210,000 in revenues, $110,000 in expenses, and owner drawings of $20,000.138. Owner’s equity at the end of the year was a. $120,000. b. $100,000. c. $80,000. d. $90,000.139. The net income reported by Benny’s Repair Shop for the year was a. $80,000. b. $100,000. c. $6 0,000. . $190,000.Use the following information for questions 140–141. Berwick Company compiled the following financial information as of December 31, 2008: Revenues$140,000 Berwick, Capital (1/1/08)105,000 Equipment40,000 Expenses125,000 Cash35,000 Berwick, Drawings10,000 Supplies5,000 Accounts payable20,000 Accounts receivable15,000140. Berwick’s assets on December 31, 2008 are a. $235,000. b. $170,000. c. $80,000. d$95,000.141. Berwick’s owner’s equity on December 31, 2008 is a. $105,000. b. $110,000. c. $80,000. d. $120,000.142. Ironton Company’s owner’s equity at the beginning of August 2008 was $300,000. During the month, the company earned net income of $60,000 and owner’s drawings were $20,000. At the end of August 2008, what is the balance in owner’s equity? a. $260,000 b. $300,000 c. $340,000 d. $380,000143. On January 1, 2008, Jackson Company reported owner’s equity of $470,000. During the year, the owner with drew cash of $20,000. At December 31, 2008, the balance in owner’s equity was $500,000. What amount of net income or net loss would the company report for 2008? a. Net income of $30,000 b. Net loss of $50,000 c. Net income of $10,000 d. Net income of $50,000 Use the following information for questions 144–146.Jenkins Catering started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $8,000 in expenses. Jenkins made an additional investment of $3,000 and withdrew cash of $5,000 during the year.144. The owner’s equity at the end of the year was a. $21,000. b. $18,000. c. $8,000. d. $2,000.145. The net income reported by Jenkins Catering for the year was a. $16,000. b. $11,000. c. $8,000. d. $3,000.146. Owner’s equity changed by what amount from the beginning of the year to the end of the year? a. $15,000 b. $14,000 c. $6,000 d. $3,000147.During the year 2008, Toront o Enterprises earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and had owner drawings of $3,000. Net income for the year is a. $45,000. b. $20,000. c. $17,000. d. $15,000.148. At October 1, Bennington Enterprises reported owner’s equity of $35,000. During October, no additional investments were made and the company earned net income of $4,000. If owner’s equity at October 31 totals $32,000, what amount of owner drawings were made during the month? a. $0 b. $1,000 c. $3,000 d. $7,000149. At October 1, Bennington Enterprises reported owner’s equity of $35,000. During October, no additional investments were made and the company posted a net loss of $3,000. If owner’s equity at October 31 totals $32,000, what amount of owner drawings were made during the month? a. $0 b. $1,000 c. $3,000 d. $7,000150. At October 1, Bennington Enterprises reported owner’s equity of $35,000. During October, the owner made additio nal investments of $2,000 and the company earned net income of $6,000. If owner’s equity at October 31 totals $40,000, what amount of owner drawings were made during the month? a. $0 b. $3,000 c. $4,000 d. $5,000151. At October 1, Bennington Enterprises reported owner’s equity of $35,000.During October, the owner made additional investments of $5,000 and the company posted a net loss of $3,000. If owner’s equity at October 31 totals $35,000, what amount of owner drawings were made during the month? a. $0 b. $2,000 c. $3,000 d. $5,000 Additional Multiple Choice Questions152. Which of the following is not part of the accounting process? a. Recording b. Identifying c. Financial decision making d. Communicating153. The first part of the accounting process is a. communicating. b. identifying. c. processing. d. recording.154. Keeping a systematic, chronological diary of events that are measured in dollars and cents is called a. ommunicating. b. identifying. c. process ing. d. recording.155. Auditing is a. the examination of financial statements by a CPA in order to express an opinion on their fairness. b. a part of accounting that involves only recording of economic events. c. an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems. d. conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly.156. Internal users of accounting information include all of the following except a. company officers. b. investors. c. marketing managers. . production supervisors.157. The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the FASBSEC a. nono b. yesno c. noyes d. yesyes158. The primary accounting standard-setting body in the United States is the a. Financial Accounting Standards Board. b. International Accounting Standards Board. c. Internal Revenue Service. d. Securities and Exchan ge Commission.159. A proprietorship is a business a. owned by one person. b. owned by two or more persons. c. organized as a separate legal entity under state corporation law. d. owned by a governmental agency.160.A net loss will result during a time period when a. assets exceed liabilities. b. assets exceed owner's equity. c. expenses exceed revenues. d. revenues exceed expenses.161. The Ryder’s Uptown Grill received a bill of $400 from the Erml Advertising Agency. The owner, John Ryder, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is a. a decrease in Cash and an increase in Accounts Payable. b. a decrease in Cash and an increase in J. Ryder, Capital. c. an increase in Accounts Payable and a decrease in J. Ryder, Capital. d. a decrease in Accounts Payable and an increase in J.Ryder, Capital.162. James Company purchases $600 of equipment from Mundelein Inc. for cash. The effect on the components of the bas ic accounting equation of James Company is a. an increase in assets and liabilities. b. a decrease in assets and liabilities. c. no change in total assets. d. an increase in assets and a decrease in liabilities.163. Morreale Beaver Company buys a $12,000 van on credit. The transaction will affect the a. income statement only. b. balance sheet only. c. income statement and owner's equity statement only. d. income statement, owner's equity statement, and balance sheet.
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